It is not much good talking about fundamental and irreversible changes in our society and being content with a 38 per cent Labour voting intention. ... Democracy means that you need a substantially stronger moral position than this to govern effectively at all, let alone effecting a peaceful social revolution. The programme we put forward must be capable of being carried out in what may well be difficult economic circumstances.
British politician (1920–2003)
Roy Harris Jenkins, Baron Jenkins of Hillhead OM PC (11 November 1920 – 5 January 2003) was a British politician who served as the sixth president of the European Commission from 1977 to 1981, having previously been one of the primary proponents of British entry into the European Economic Community. At various times a Member of Parliament (MP) for the Labour Party, Social Democratic Party (SDP) and the Liberal Democrats, he was Chancellor of the Exchequer and Home Secretary under the Wilson and Callaghan Governments. He initially identified as a democratic socialist, and later as a social democrat and centrist. As Chancellor of the Exchequer, he pursued a tight fiscal policy to control the inflation of the pound sterling. As Home Secretary, he was responsible for abolishing capital punishment and decriminalizing abortion, homosexuality, and divorce. He ran in the 1976 Labour Party leadership election to become Prime Minister, but was defeated by James Callaghan and briefly retired from British politics to serve as President of the European Commission. He returned to Britain to help found the Social Democratic Party, which formed an alliance with the Liberal Party under David Steel and was intended as a centrist alternative to the Conservative Party under Margaret Thatcher and the Labour Party under Michael Foot. However, he resigned as Party Leader after the SDP-Liberal Alliance failed to outpoll the Labour Party in the 1983 general election.
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First, there is really no sign at all of any significant reduction in unemployment without a major change in policy...Unemployment has probably levelled out but at a totally unacceptable figure. Secondly, contrary to what the Secretary of State said, the post-oil surplus prospect—not merely the post-oil prospect, because the oil will take a long time to go, but the surplus, the big balance of payments surplus, which is beginning to decline quite quickly—still looks devastating...our balance of payments is now overwhelmingly dependent on this highly temporary and massive oil surplus. Our manufacturing industry is shrunken and what remains is uncompetitive...We have a manufacturing trade deficit of approximately £11 billion, all of which has built up in the past three to four years. This is containable by oil and by nothing else. Invisibles can take care of about £4 billion or £5 billion but they cannot do the whole job. As soon as oil goes into a neutral position we are in deep trouble. Should it go into a negative position, the situation would be catastrophic...To sell off a chunk of capital assets and to use the proceeds for capital investment in the rest of the public sector might just be acceptable. However, that is not what is proposed, and what is proposed cannot be justified on any reputable theory of public finance; and when it is accompanied by a Minister using the oil—which might itself be regarded as a capital asset; certainly it is not renewable—almost entirely for current purposes, it amounts to improvident finance on a scale that makes the Prime Minister's old friend General Galtieri almost Gladstonian.
But this is not merely a question of our political and military posture. It also affects our economic policy. We have to live and trade in an open world. We cannot make ourselves a closed society in which we can only keep men and capital by erecting a ring fence around ourselves so that they have to stay. ... To sustain it [our overseas deficit]—and the only alternative would be a drastic cut in our standard of living and a considerable contribution to the dislocation of world trade—we shall have to borrow and go on borrowing a great deal from abroad. To pretend that you could get this money in while retreating into a siege economy would be to live in a world of dangerous phantasy.
They [the Government] argue that if the rich are made rich enough, some wealth will spill over to make the poor less poor. There is no sign of that happening. On the contrary, the gap has widened. The number of those below the poverty line and with little hope of rising above it has grown inexorably. Connected divides become deeper and wider—that between the employed and the unemployed, that between the north and south, and that between those who share prosperity and those to whom it looks like a closed fortress. The Budget...does nothing to counteract that. ... If I were the Chancellor, I would be deeply apprehensive for the future cohesion of our society under his policies.
[The effect of the Suez Crisis on the French was quite different.] We turned across the Atlantic. They turned across the Rhine, and Europe was built without us. There is room for argument about the causes of what followed. There is no doubt about what happened. Over the first 13 years of the [European] Community's life national income per head increased by 72 per cent in the Six and by 35 per cent in Britain. The result was that from being almost the richest country in Western Europe we became one of the poorest. France for the first time since the industrial revolution surpassed us in economic strength. The German economy achieved nearly twice our weight.
If Reg Prentice is cut down it is not just the local party that is undermining its own foundations by ignoring the beliefs and feelings of ordinary people, the whole legitimate Labour Party, left as well as right, is crippled if extremists have their way. ... If tolerance is shattered formidable consequences will follow. Labour MPs will either have to become creatures of cowardice, concealing their views, trimming their sails, accepting orders, stilling their consciences, or they will all have to be men far far to the left of those whose votes they seek. Either would make a mockery of parliamentary democracy. The first would reduce still further, and rightly reduce, respect for the House of Commons. It would become an assembly of men with craven spirits and crooked tongues. The second would, quite simply, divorce the Labour Party from the people.
Let there be no doubt that our present rate of inflation is the main cause of our economic difficulties. There never has been a more mistaken piece of economic analysis than the view that we should accept inflation to avoid unemployment. Inflation today, so far from being an alternative to unemployment, is its main cause. If our rate of cost increase is allowed to continue close to twice that of the average for the developed world it will increasingly price us out of world markets. Employers...will have to restrict their activities and still more their labour force in response to mounting and uncontainable wage and salary bills.
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We exist to change society. We are not likely to be very successful if we are horrified at any suggestion of changing ourselves. One of the things from which we are suffering is a misplaced national complacency: a belief that we do things better than anyone else. Do not let us be too afraid, as a Labour Party, of learning from some of our friends abroad. Parties all over the world have been modernizing themselves. There are only two unreconstructed socialist parties in the world—the French and the Australian. Do not let us be too conservative, complacent, and insular.
During this conversation she vouchsafed her only awareness of Dimbleby. The Belgian Prime Minister was justifying his hesitancy about cruise missiles by citing his coalition difficulties. Mrs Thatcher turned to me with a mixture of belligerence, good humour and total self-satisfaction and announced to a slightly bewildered table – none of them elected by the British system – "And that is all your great schemes would amount to."